Thursday, May 12, 2011

Here we go again with Forex Trading Basics: Glossary of Common FX Trading Terms.

Due to the great need identified with new or inexperienced forex traders today, there is enough justification to some bit more on the basics to mastering how best to trade Forex successfully online. As a follow-up to our last chat together, we shall be treating the topic...

Forex: Abbreviation for Foreign Exchange (also known as FX), Forex is the buying and selling of a country's currency in order to turn a profit.

By studying fluctuations in the economy, investors can predict whether a country's currency will increase or decrease, thereby allowing them to buy low and sell high. The trading occurs through the simultaneous buying of one currency and selling of another. While the New York stock exchange deals with amounts of money in the millions each day,

Forex brokers trade over $4 trillion daily.

PIP: One pip is the smallest change in value that a currency pair exchange rate can make, either increasing or decreasing. It is the last decimal point in a quotation; for currency's it is equivalent to a ten thousandth (1/10,000) of a unit of that currency.

For example, if the EUR/USD is valued at 1.3114 and it is said to have raised two pips, then it will be valued at 1.3116. Although these seem like infinitesimal gains,

...with enough money invested and wise trades it is possible to make a substantial profit.

Limit Order: When an investor wants to control how much profit and loss he/she is willing to handle, a "limit order" is instructed to a Forex broker. This is an order with specified boundaries, telling the Forex broker at what point above market level to sell and at what point to purchase below market level.

Instead of having to constantly check the updates in the market, a limit order allows the trader to trust the Forex broker to sell the currency when it hits a particular number, assuming that it has hit its peak and will no longer continue increasing in value.

Likewise, the broker is charged with purchasing a currency when it reaches a specified level below the market price, in hopes that the currency's value will turn around and increase shortly thereafter.

Stop- Loss Order: This is an order instructing a Forex broker to cut off a current trade once a specified low is hit in order to limit losses. Sometimes currencies do not perform how their investors anticipated. A stop-loss order is an attempt to dump the currency in order to prevent further losses by setting a minimum value at which the investor is no longer willing to stick with a particular transaction.

Exotic Currency: Any currency that is not heavily or popularly being traded.

Hawkish: This an adjective used to describe any Forex trading person or group that takes an aggressive stance in regards to a particular economic situation. It is most commonly used in reference to the economy or interest rates of a country.

For example, if the Bank of England suggested that they were going to increase interest rates in order to reduce high inflation, they would be considered "hawkish" in their aggressive actions.

Dovish: This adjective is used to describe a passive or non-aggressive viewpoint in response to an economic event, particularly in regards to a country's interest rates or economy.

An example would be bankers who prefer economic expansion and the creation of jobs rather than tightening interest rates, allowing the market to correct itself with little government interference.

Patrick Kalashnikov is a freelance writer who's got a bunch of great info on general Forex trading and popular Forex trading platforms. To get in touch with a Forex broker that offers free practice accounts, visit http://www.vertifx.com

Article Source: http://EzineArticles.com/?expert=Patrick_Kalashnikov

Hope you did not simply gloss over the material featured today because these are Forex terms you will come across quite often. A word is in place to state that there are other Forex terms in use but these have been provided in order to get you familiar with the regular FX trading terms.

The last thing you should do when you finally get to pursue your dream and ambition to trade FOREX is to jump in blind. Of course, there are prospects and opportunities to make money online but you need to understand the basics first.

This is one of the guarantees you have if you are to make profits rather watch your investments simply waste away. You can truly make money trading FOREX and you can equally lose money.

The article presented below should give you more insider tips on how to be a successful Forex trader starting today.

If you are interested in working from home or if you want to change your career to some better where you can try your intelligence and skill then you can go for forex trading where you can earn good amount of income without investing too much.

Forex trading is probably the only field where you don't have to invest too much but you still get to earn profits from the very first day itself.

This is the reason why many people are now looking forward for some better forex training that can help them to get some hands on experience and information about how they should deal day in and out.

Although, there are many forex training software and guides available on the web, you have to be very careful about how you make your decisions. Most of the forex training guides do not provide you with the top information that you need.

Hence, you will end up spending your precious money on information that you can get for free on the internet. The best thing that you should know about forex trading is the market movement because that is really important when you are dealing with foreign exchange currencies.

There are many forex signal providers that provide you with the information that you need. Since forex trading is more about speculating what will come in the near future

You need some kind of help that can tell you what the market trends will be in next one hour or one day.

Although, not all forex signal providers are accurate, but you can select the best forex signal provider after considering the past performances, and how quickly the signals are provided to you. Some forex signals are designed for professionals and they can give you split second forex signals to keep you ahead of the rest.

Hence, the best way to find success in forex trading is through proper training and use of better trading software.

You can use the tips that are provided to you in the training but make sure you use your visionary skills while making decisions which are based on perfect calculations rather than blindly following the tips because situations are never the same in global financial market and the tips provided to you might soon become outdated.

If you want to be a successful forex trader you will need to have a fine balance between using your training skills and signals provided to you by the software.

Did you find this article helpful? If you did, then take a look at the official website here: http://traderswiperblog.org/official-website

There you are, enough information to get you started in the right direction. When next we shall meet on this blog, let's see how far we can go considering a few FOREX software out there.

FOREX TRADE ALERT- Following up with the last topic discussed/shared, it is good not to assume that every visitor to this blog already knows all there is to trading FOREX online successfully.

In keeping with the trend and pace set, find below an article on the SEVEN Most Traded Currencies in FOREX all time, it promises to be an interesting and informative read...

The Seven Most Traded Currencies in FOREX. By Omar Vargas

Currencies are traded in dollar amounts called “lots”.

One lot is equal to $1,000, which controls $100,000 in currency. This is what is known as the "margin". You can control $100,000 worth of currency for only 1,000 dollars. This is what is called “High Leverage”.

Currencies are always traded in pairs in the FOREX.

The pairs have a unique notation that expresses what currencies are being traded. The symbol for a currency pair will always be in the form ABC/DEF. ABC/DEF is not a real currency pair, it is an example of a symbol for a currency pair.

In this example ABC is the symbol for one countries currency and DEF
is the symbol for another countries currency.

Here are some of the common symbols used in the Forex:

USD - The US Dollar
EUR - The currency of the European Union "EURO"
GBP - The British Pound
JPN - The Japanese Yen
CHF - The Swiss Franc
AUD - The Australian Dollar
CAD - The Canadian Dollar

There are symbols for other currencies as well, but these are the most commonly traded ones.

A currency can never be traded by itself. So you can not ever trade a EUR by itself. You always need to compare one currency with another currency to make a trade possible.

EUR/JPY Euro / Japanese Yen "Euro Yen"
The listed currency pairs above look like a fraction. The numerator (top of the fraction or "left" of the / however you want to SEE it) is called the base currency. The denominator (bottom of the fraction or "right" of the /however you want to SEE it) is called the counter currency.

When you place an order to buy the EUR/USD, for instance, you are actually buying the EUR and selling the USD. If you were to sell the pair, you would be selling the EUR and buying the USD. So if you buy or sell a currency PAIR, you are buying/selling the base currency. You are always doing the opposite of what you did with to base currency with the counter currency.

If this seems confusing then you're in luck. You can always get by with just thinking of the entire pair as one item. Then you are just buying or selling that one item. Thinking like this will still enable you to place trades. You only need to be aware of the base/counter concept for Fundamental Analysis issues.

So why is it important to know about the base/counter currency?

The base/counter currency concept illustrates what is actually taking place in a Forex transaction. Some of you reading this, know that short-selling was restricted in the stock market

*(Short-selling is where you sell a stock/currency/option/commodity first and then try to buy it back at a lower price later).

But in the FOREX you are always buying one currency (base) and selling another (counter). If you sell the pair you are simply flipping which one you buy and which one you sell. The transaction is essentially the same. This allows you to short-sell with no restrictions.

You want to be able to short-sell with no restrictions so you can make money when the market drops as well as when it rises. The problem with traditional stock market trading is that the market has to go up for you to make money.

Tuesday, May 10, 2011

Forex Trade Alert is your key to the Forex Goldmine Online especially where you are new or inexperienced; or where you desire to make huge profits and record near zero losses trading the Forex market and your chosen/selected currency pairs daily.

Forex Trade alertsinforms you about the way and manner the forex market is moving/trending in real time among other market indicators.

Why Do You Need Forex Trade Alert(s)?1. It helps you monitor the forex market in real time.2. It helps you keep track of changes in forex trades.3. It helps you know when to buy or sell your positions held.4. It helps you determine which currency pairs to trade.5. It helps you seize on opportunities to make profits or reduce risks that could result in losses.

If you are new to trading FOREX online, a forex trade alert is a tremendous resource which you can depend on in order to analyze and understand the Forex market effectively.

If you are new to trading FOREX online, a forex trade alert is a tremendous resource which you can depend on in order to analyze and understand the Forex market effectively.

How Does Forex Trade Alerts Software Work?The Forex trading alert software works in real time and delivers trading alerts by ‘buy’ and ‘sell’ forex signals which are oftentimes referred to as positions.

When you check your FOREX trading system adopted and get to see a forex trading alert software as part of it, you come to know when to buy the currency pairs you have chosen/selected and/or when to sell them off.

You do not need to do anything to get the forex trade alert software to function or report the forex market trends in real time at all because it works completely on autopilot mode.

What Are Known Benefits With Forex Trade Alert Software?1. Forex Day Traders can use it.2. Forex Swing Traders can use it also.3. The forex alert software actively monitors the market and trends 24 hours/day.4. Forex trade alert software seeks high probabilities for profits/gains and reports/indicates same.5. Once an alert comes (or when you receive a forex trade alert), you can execute a live trade via your broker or on the internet immediately.

How Do You Monitor Forex Trends or Receive Forex Trade Alerts?1. Through the use of Forex Trade Alerts Software.2. Through your forex broker.3. By Email messages sent to you which you can readily access on your mobile devices such as cellphones, pagers, ipads and other digital devices you carry about.

What Are The Major Indicators With A Forex Trade Alert?Basically, any typical forex trading alert software, program or tool provides the following types of signals: